RBI postpones deadline for restrictions on Paytm Payments Bank to March 15

From the previous February 29 to now March 15, the Reserve Bank of India (RBI) has extended the deadline for Paytm Payments Bank services. According to a press release from the apex bank of India, the decision was made with consideration for the interests of merchants as well as the general public.

It was made clear that until March 15, 2024, users could make deposits, credit transactions, prepaid services, wallets, FASTags, and National Common Mobility Cards. After March 15, 2024, no additional deposits, credit transactions, or top-ups would be permitted in any customer account, according to the RBI.
 

The RBI said, “No further deposits credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc. after March 15, 2024 (extended from the earlier stipulated timeline of February 29, 2024), other than any interest, cashback, sweep in from partner banks or refunds which may be credited anytime. Withdrawal or utilization of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, up to their available balance (no change).”

The RBI also directed that withdrawals up to their available balance should be facilitated by the bank from all accounts and wallets, excluding the ones that are frozen or lien marked by Law Enforcement or judicial authorities.

Meanwhile, Paytm Founder Vijay Shekhar Sharma said in a post on X, “Paytm QR, Soundbox and EDC (card machine) will continue to work like always, even after March 15.”

Earlier, the RBI disallowed the Paytm subsidiary from accepting further deposits or accounts from February 29. The central bank added that it had put certain business restrictions on Paytm Payments Bank Ltd, operated by One97 Communications, in exercise of its powers under Section 35A of the Banking Regulation Act, 1949.